The current financial year has started well and current trading remains in line with management's expectations. Our recruitment teams have seen some tentative signs of recovery in the markets we serve but overall the UK economy remains characterised by caution and restraint. We are planning on the basis that the economy will show only weak growth in the current year. Our approach ensures that even in challenging conditions Penna will continue to be profitable and cash generative.

However, we are ready to respond immediately to recovery and our cost and margin structure will deliver substantial incremental profits from relatively modest increases in revenue."